China has made efforts to engage top executives from major U.S. companies during an annual conference, reflecting Beijing’s strategy to counter trade challenges by fostering investment rather than opting for aggressive retaliation.
The world’s second-largest economy has been trying to welcome foreign investments to stimulate its economic growth and sought to leverage business ties to influence the U.S. administration under President Donald Trump.
Though the U.S. increased tariffs on Chinese goods twice since January, Beijing has refrained from broad countermeasures, instead imposing limited sanctions and restrictions on a small number of American firms.
Meanwhile, discussions at the China Development Forum in Beijing showcased a more diplomatic approach, contrasting with China’s recent assertive official statements about being ready to confront aggressive trade measures from the U.S.
Stephen Roach, a senior fellow at Yale Law School’s Paul Tsai China Center, noted that the focus of Chinese participants was not on retaliatory tactics, but rather on understanding President Trump’s objectives and strategies.
Roach highlighted that the inquiries he received centered around Trump’s motivations and his vision for America, underscoring this as a unique period for the U.S.’s global economic role, as it reverts to a protective tariff approach with historical precedence for potential negative outcomes. He anticipated prolonged uncertainty in U.S. and global policy landscapes.
U.S. stock markets have fluctuated in recent weeks as investors evaluate the potential economic ramifications of Trump’s evolving tariff policies on major trading partners. On top of that, tariffs might hinder progress in reducing domestic inflation rates, as indicated by U.S. Federal Reserve Chair Jerome Powell.
